Understanding Fees, Chargebacks, and Disputes

Bank Failures

When this happens, we automatically email both you and the guardian informing you of the situation. There are no fees associated with a bank failure. 

Here are the most common reasons bank payments fail and what to do:

• No Account Found/Incorrect Account Number - The account number provided is incorrect. This could be due to a typo in the number entered or from entering in a non-account number. Parents can log in to their accounts to update and retry their payment method.
• Insufficient Funds (NSF) - The payment bounced due to insufficient funds in the payer's bank account. Parents can log in to their accounts to update and retry their payment method.

Card Failures

There is no fee for card failures. Snap! Spend also automatically retries payments three days in a row for parent invoice payments for card failures, like insufficient funds. 

Card Disputes 

Card Dispute Types

• Unauthorized Transaction Dispute: This is the most common type of card dispute. You can submit Unauthorized Transaction Disputes when a card is lost or stolen, or in other scenarios in which the sensitive card information is compromised.

• Authorized Transaction Dispute: You can submit a dispute when a transaction was authorized, but there’s been an issue with the goods that they were eligible for in return: The goods were damaged or not received, or any other type of dissatisfaction with the product or services. Cardholders may not be eligible for Provisional Credit when submitting this type of dispute, with two exceptions:

  • ATM terminal dispense error - The cardholder will be granted Provisional Credit within 10 business days.
  • Transactions under $25 - The cardholder will be granted Provisional Credit within 5 business days.

To dispute a charge on your Snap! Spend debit card, please call [insert number here]. 

Our processor partner will initiate a preliminary review and, if you're eligible, will post Provisional Credit to your account within 5-10 business days.

Chargebacks

A card chargeback is a protection afforded to consumers through card networks and issuers and—as a merchant processor—these rules apply to you. When payers dispute a card payment, the original payment amount you received is pulled from your merchant account or bank account and returned to the payer. 

Chargebacks can be contested by providing evidence that you are entitled to the funds (e.g., the payer entered into a contractual agreement with you). If you would like to contest a card dispute, please contact us directly.

Bank (ACH) Disputes

Consumers are protected by law from unauthorized debits to their bank account and can dispute payments by contacting their bank within 60 days of the unauthorized payments. Please email our support team if you have any questions regarding ACH disputes. 

Still have questions or need help? Please reach out to us directly at spend.support@onsnap.com or by phone at 276-531-9260. (ext. 6)

Snap! Spend is a financial technology company and is not a bank. Banking services provided by Thread Bank; Member FDIC. The Snap! Spend Visa Debit is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. 

Your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. 

You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks.  Please contact customerservice@thread.bank with questions on the sweep program.